'Turning to Profit' Zinus Seeks Rebound Through Global Expansion Including China

Operating Loss of 33.3 Billion KRW in First Half
Increase in Promotion Expenses to Reduce Inventory
Flagship Store Opened in Shanghai, China
Confident in Performance Rebound in Second Half

Zinus, a mattress and furniture company affiliated with Hyundai Department Store Group, has returned to a deficit. This is due to increased promotional expenses to clear inventory and sluggish orders from client companies. Zinus plans to rebound by targeting global markets such as China.

Zinus announced on the 9th that it recorded sales of 358.5 billion KRW and an operating loss of 33.3 billion KRW in the first half of the year. Sales decreased by 20.1% compared to the same period last year, and operating profit turned into a loss.

The Zinus flagship store opened in Shanghai, China. (Photo by Hyundai Department Store Group)

A Zinus representative explained, “Sales and operating profit in the second quarter were sluggish due to increased promotional expenses to clear existing bulky big-box inventory and a temporary decrease in orders from major clients.”

Zinus is confident in improving its performance in the second half of the year. It is actively launching efforts to target global markets such as the United States and China. Mattress demand has already increased in the U.S. In May, mattress orders from major U.S. clients increased, and from June, the third factory in Indonesia began operations. The annual maximum mattress production capacity of the third Indonesian factory is 3 million units. Zinus expects the ‘Bed-in-a-Box’ product, which compresses mattresses and ships them in boxes, to become popular in the U.S. offline market. Currently, contract orders are being discussed with two major U.S. clients.

Additionally, Zinus is entering China, the world’s second-largest mattress market. This month, Zinus opened its first flagship store in a local department store in Shanghai. Targeting college students and young professionals, who are Zinus’s main customer base in China, Zinus is also collaborating with ‘Line Friends,’ which is popular locally. Starting with the Shanghai store, Zinus plans to open about 10 stores in major Chinese cities within the year. The company is also pursuing a local e-commerce expansion strategy. Recently, it has entered local home shopping channels such as ‘Tmall,’ ‘JD.com,’ ‘TikTok,’ ‘Pinduoduo,’ and ‘Ugo Home Shopping,’ among China’s leading e-commerce companies. Beginning with expanding its sales network in China, Zinus will actively expand into Northeast Asian markets including Korea, China, and Japan. Furthermore, it plans to enter a total of 29 countries within three years.

The operational efficiency effect from clearing existing inventory is also expected to be reflected in the second half. In May, Zinus introduced the ‘New Wonder Box,’ which applies next-generation compression packaging technology. This reduces volume by up to 60% compared to existing packaging boxes. Compared to previous packages, it can load up to 60% more products in the same space, allowing clients to significantly reduce logistics and transportation costs.

A Zinus representative said, “From May, client orders have normalized, and with the expanded shipment of the new Small Box product, which has a higher compression rate, we expect a turnaround in performance in the third quarter due to improved profitability.”

This content was produced with the assistance of AI translation services.